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Australian 7-Eleven operator fined for underpaying migrant workers

Xinhua, May 2, 2016 Adjust font size:

A 7-Eleven operator in Australia has been fined a record 214,200 AU dollars (162,790 U.S. dollars) for deliberately underpaying two migrant employees and falsifying records, the Fair Work Ombudsman said in a press release on Monday.

Harmandeep Singh Sarkaria, who owns and operates the 7-Eleven fuel outlet in a Sydney suburb, has been fined 35,700 AU dollars (27,130 U.S. dollars) and his company Amritsaria Four Pty Ltd has been fined a further 178,500 AU dollars (135,600 U.S. dollars).

They are the largest penalties secured against a 7-Eleven franchisee by the Fair Work Ombudsman, which has undertaken a range of compliance actions aimed at addressing systemic non-compliance by 7-Eleven across Australia.

The Fair Work Ombudsman recently released a report on the findings of its inquiry into the 7-Eleven franchise network, which found that a number of franchisees have been deliberately falsifying records to disguise the underpayment of wages.

In his Federal Circuit Court judgment, Judge Justin Smith said Sarkaria had "deliberately flouted his legal obligations" and engaged in "a sustained and deliberate process of deception" aimed at maximizing financial return.

"One of the aims of imposing a penalty is to mark a warning for others who might be tempted to engage in similar conduct," Smith said.

"There was evidence of substantial non-compliance by other 7-Eleven franchisees."

Sarkaria underpaid two console operators at his Blacktown outlet a total of 49,426 AU dollars (37,563 U.S. dollars). The underpayments are the result of the employees often being paid rates equivalent to 10 AU dollars (7.6 U.S. dollars) an hour against a normal hourly rates of more 22 AU dollars (16.7 U.S. dollars) an hour and up to 29.27 AU dollars (22 U.S. dollars) an hour for some weekend, public holiday and overtime shifts.

Sarkaria made false entries into the 7-Eleven head office payroll system about the number of hours the employees had worked.

He also provided Fair Work inspectors investigating the underpayments with false time-and-wages sheets.

Sarkaria and his company admitted contravening workplace laws and back-paid the two employees only after the Fair Work Ombudsman advised it was commencing legal action. Endit